Shinhyup Provides Financial Support to Businesses Affected by COVID-19

[Asia Economy Reporter Kim Min-young] The National Credit Union Federation of Korea announced support measures on the 28th to assist local communities struggling due to the novel coronavirus infection (hereafter COVID-19).

In response to the spread of COVID-19 infection cases, financial support measures have been prepared for the local economy and infection victims, including ▲interest-free credit loans ▲interest support on existing secured loans ▲postponement of mutual aid fee payments ▲postponement of interest payments on policy loans.

Additionally, the Credit Union Social Contribution Foundation will provide ▲200,000 masks ▲100,000 hand sanitizers to crisis areas to help prevent the spread of the infection.

Interest-free credit loans of up to 10 million KRW for a maximum of one year will be provided to self-employed individuals confirmed to have suffered damages due to visits by COVID-19 confirmed patients. The loan product is the ShinHyup Together Social Sharing Support Loan with an annual interest rate of 4%, but the loan interest will be fully supported by the Credit Union Social Contribution Foundation, Korea's first donation cooperative funded by donations from credit unions nationwide and their employees.

Furthermore, for existing loans of self-employed individuals confirmed to have suffered damages due to visits by COVID-19 confirmed patients, the Credit Union Social Contribution Foundation will support interest equivalent to 1.5% per annum. This applies to secured loans up to 200 million KRW (limited to collateral of the damaged business site or lease deposit collateral of the damaged business site) for the remaining loan period (up to 6 months).

For COVID-19 infection victims, support will be provided for postponement of mutual aid fee payments and postponement of interest payments on policy loans. Those eligible include mutual aid contract holders confirmed with COVID-19 or their families, allowing for a six-month deferral of mutual aid fee payments and policy loan interest payments, directly supporting those affected.

Moreover, 200,000 masks (including 100,000 donated by Daegu Cheongun Credit Union) and 100,000 hand sanitizers will be delivered to the Daegu and Gyeongbuk regions, among others.

This content was produced with the assistance of AI translation services.